SC Notice on SLP Challenging Extension of Limitation under CGST Act

HCC-SEW-MEIL-AAG JV Vs Assistant Commissioner of State Tax & Ors. (Supreme Court of India)

SC issues notice on SLP challenging validity of notification no. 09 & 56 of 2023 extending limitation for passing orders u/s 73 of CGST Act

The Supreme Court has issued a notice on a Special Leave Petition (SLP) challenging the validity of Notifications No. 09 and 56 of 2023, which extended the time limit for adjudicating show cause notices under Section 73 of the Central Goods and Services Tax (CGST) Act. The case questions whether the government could extend the statutory timeline for adjudicating tax demands for the financial year 2019-20 through such notifications issued under Section 168-A of the CGST Act.

Senior Advocate Dr. S. Muralidhar, appearing for the petitioner, argued that various High Courts have expressed differing views on the legality of such extensions. This divergence in judicial opinion has led to significant uncertainty in tax adjudications. The Supreme Court acknowledged the importance of the matter and has sought responses from the respondents. The case is scheduled for further hearing on March 7, 2025.

The primary contention in the petition is that the government’s notifications violate taxpayers’ rights by retroactively extending the limitation period. The petitioner argues that such extensions through executive notifications undermine legal certainty and exceed the powers granted under the GST framework. This case is expected to set a crucial precedent regarding the government’s authority to modify statutory timelines through subordinate legislation.